Nepotism storm rocks Plett municipality

Plettenberg Bay’s reputation as a premier holiday destination has been overshadowed by allegations of nepotism and irregular recruitment after a confidential probe implicated a senior municipal official.

A report has incriminated Bitou Local Municipality’s director of corporate services, advocate Luvuyo Loliwe, in alleged recruitment irregularities, nepotism and possible financial misconduct.

One of the findings states that Loliwe interfered with the appointment of a cemetery superintendent by changing the interview panel.

He also allegedly overruled the municipal manager on salary and benefits and is said to have acted beyond his delegated powers.

The report estimates this resulted in a loss of R376 183.57 and could expose the municipality to a liability of almost R18 million over 25 years.

An investigation by the municipality’s senior manager for governance and compliance was triggered by a fraud hotline tip-off over the cemeteries’ superintendent appointment.

The report states: “The recruitment process was not fair and not in accordance with the requirements of the municipal staff regulations nor the municipal recruitment and selection policy, and there is evidence that due process was not followed, procedures and processes have not been adhered to, and it has thus caused immense financial harm and future financial losses to the municipality.

“The estimated quantum of financial loss points towards the fact that elements of financial misconduct may be present, which warrants a further detailed investigation into the matter.

“I cannot draw a conclusion in respect of the allegations of fraud levelled against the process, yet the sheer number of anomalies and inconsistencies may warrant a further in-depth investigation.”

The probe also found that Loliwe, while acting as municipal manager, approved the appointment of his brother, Anele Loliwe, as a senior fitter for pump stations.

Questions were raised about his qualifications and the alleged inaccuracies in his application.

The report says misconduct, nepotism and possible collusion and fraud cannot be ruled out.

“Upon further scrutiny of the documentation relating to the appointment of Mr Anele Loliwe in the position of artisan fitter, it was confirmed that Mr Luvuyo Loliwe, his brother, also signed the offer of employment extended to him on 3 June 2025. This is very concerning, as Mr Luvuyo Loliwe should have known that Mr Anele Loliwe was dishonest in respect of his residential address stated in his application as well as in his CV; he should in all probability also have been aware that his brother did not possess the necessary qualification for the position if he applied the same due diligence as that which was evident for other recruitment processes,” the report reads.

Municipal spokesperson Andile Namntu said that while it was an in-committee matter, Bitou could confirm that Loliwe had been “placed on suspension and that there is an ongoing investigation regarding the said recruitment process”.

“To date, Bitou has already appointed an independent investigator to begin investigating all the claims.

Loliwe said: “All I can tell you is this is just the beginning; facts backed with evidence shall prevail and those that misrepresented Bitou Council shall all pay in the end. Watch and see. I just hope you will still be interested in telling the end of the story.”

Masizole Mnqasela, the president of the Alliance of Citizens for Change, who first raised the matter on social media, welcomed the suspension.

He also called for action from the provincial government, including the Western Cape MEC for local government, Anton Bredell.

“Such behaviour in the local government is a serious violation of people’s trust in governance. It further erodes accountability,” Mnqasela said.